WHEN IS THE BEST TIME TO SELL A HOUSE?
Updated April 6, 2021
Right now is an excellent time to sell a house - the market is very buoyant and there is high buyer competition for the number of houses available for sale which is all helping to push up the sale price.
In fact, there have been record breaking real estate prices in many regions since winter 2020.
If you want to 'go live' on the market soon to catch active buyers looking to change their lifestyle, invest, downsize or move closer to family, you will need to start the real estate process now.
This can all be done quickly with the right help. We have been vetting real estate agents for New Zealand home sellers for over a decade. If you need to move quickly, request your agent shortlist from us - mark URGENT and we will respond ASAP.
Request Agent Shortlist or call 0800 789 532
If your house or apartment is an investment property, the bright line test will have an impact on the best time to sell. Find out more here.
THE PROCESS OF SELLING A HOUSE
Some of the things you need to do to prepare for selling a house are:
- Interview real estate agents who have been vetted in advance for you
- Establish how much it will cost to sell your house including commission fees, advertising and marketing
- Know what to look for in a property appraisal
- Sign a real estate agency agreement with your chosen real estate company and agent (we can provide you with a questionnaire to help you with this)
- Approve advertising photos and set dates for them to go live
Record median house sale prices in 2020/2021
Find out what houses are selling for in your area now.
EXPATS AND OTHER FACTORS DRIVING MARKET
One reason for the buoyant buyer market is the big spike in ex-pats returning home to New Zealand as a result of Covid-19.
Their international nest-eggs often put them in the luxury real estate bracket but not exclusively. They also buy investment properties, apartments and homes in all price ranges. Lifestyle blocks are quite popular with ex-pats.
Even without Covid, people are still buying for the usual reasons such as getting onto the property ladder, downsizing, up-sizing, upgrading, changing jobs to new locations, births, deaths, building new, cashing up investment properties, wanting a warmer home or being closer to family, especially since Covid-19.
Bank lending conditions are also currently favourable with low interest rates, making it an attractive time for buyers to borrow, adding to reasons why now is a good time to sell a house.
DO IT NOW BUT DO IT DILIGENTLY
If you need to sell your house to move on, just do it - but do it diligently. Your choice of real estate agent will be your first most important decision. Here at Agent Finder NZ we have been tracking and monitoring real estate listings for a decade.
Our research shows that properties that end up listed for sale a second time around are not selling because of the problem of being put on the market at the ‘wrong’ time of year.
Instead, the lack of sale stemmed from things such as being ill-prepared, choosing an unsuitable real estate agent or poor decision-making.
The most important factor in a lack of sale is basing your sale on an incorrect market estimate.
ACCURATE REAL ESTATE APPRAISAL PARAMOUNT
A real estate appraisal sets the foundation for a property sale and if it's poorly researched in the economic climate of the day, you will be on the back foot from day one, possibly without even being aware of it. If you've decided to sell your house - start with our free agent finder service.
You'll have greater confidence in real estate agents who have been put through our vetting criteria. This also frees you up to focus on preparing your house for sale and getting your ducks in a row.
This process has been proven to get our clients the optimum sale price, within a short time frame, at any time of year. This is a safe and effective service tailored to your individual property and situation.
WHAT ABOUT SELLING AT OTHER TIMES OF THE YEAR?
Government, bank and lending policies
The best time to sell a house can be dictated by Government and bank policies. Changes in policy or rates can influence whether you choose to go to market now or hold off for a while.
1. NEW RENTAL PROPERTY POLICIES
- Pressure on landlords to comply can result in investors selling property portfolios. These types of properties can often attract first home buyers, depending on lending policies and Kiwi Saver rules.
- New investor-buyers may be looking for a property to develop, insulate, renovate and enjoy the long term rental income.
- There may be Government policies that affect timing of giving notice to tenants, especially during Covid-19.
2. INTEREST RATE CHANGES
- Interest rate reductions can stimulate buyer activity and this is a time when investors will add to their portfolios.
- Lower interest rates are also an incentive for new buyers to enter the market or existing home owners to up-spec their homes
3. LENDING POLICIES
- First home buyer activity is affected by loan to value ratios (LVR) and minimum deposit bank policies. A change in these can see your house fit into the first home buyer market. Property investors are now subject to more stringent LVRs to slow down property speculation.
SEASONAL PROS AND CONS OF SELLING A PROPERTY
- Cold New Zealand winters can motivate people to up-spec to warmer, insulated homes and winter/spring is often the time when they start looking.
- Autumn and winter often have fewer houses for sale and therefore less competition from other properties.
- Insulation and the need for a warmer, dryer home often sees buyers actively looking to buy a house in autumn.
- February and September can often have more buyer activity, although the downside is that with so many people listing at this time there are more properties competing with yours.
- Summer is considered the best time to sell a holiday home as holiday makers are out and about on the roads.
- Summer can be a good time to sell a lifestyle block with drier ground underfoot and brighter greenery.
For summer sales, take into account holiday season office hours. Law firms wind down in December and may run on skeleton staffing in January. Best to start preparing early to allow time.